Euro

Posted in Finance, Accounting and Economics Terms, Total Reads: 572

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Definition: Euro

Euro is the official national currency of the European Union. The symbol for Euro is “EUR”. The members of the European Union who have adopted Euro as the national currency (they are called Eurozone) include Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. The introduction of Euro was done by the European Union to the world in the year 1999. Physical Euro coins and paper notes were introduced three years after that on 2002. The printing and managing of Euro is done by the European System of Central Banks (ESCB).

The introduction of Euro implies the need of a globalizing economy. The common currency removed any exchange rate risk in the countries and the inter country business increased in the member countries. But there is a negative side to it too. Many researchers argue that having the same currency for many countries increases the chance crisis, for example Euro crisis. Also there is less control of a single country to the currency even though it is the national currency. Also, it gives too much power to the European Bank to set the monetary policy. The monetary policy for the European Union might not be the apt one for the member country and hence can be ineffective in maintain the goals of the monetary policy.

Hence, this concludes the definition of Euro along with its overview.

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